Which term describes the policy stance that protects domestic industries from foreign competition, such as import taxes and higher safety standards?

• A. Liberalization
• B. Protectionism
• C. Privatization
• D. Globalization

Answer: (B)

This is about a trade policy stance that shields domestic industries from foreign competition. The term that fits is protectionism because it involves measures that raise barriers to imports, such as import taxes (tariffs) and regulations or standards that make foreign goods more costly or difficult to sell domestically. These tools are designed to give domestic producers an advantage by limiting foreign competition.

Liberalization, on the other hand, means reducing barriers to trade to encourage free exchange of goods and services. Privatization refers to transferring ownership of state-owned enterprises to the private sector. Globalization describes the broader process of increasing economic integration and interdependence across countries.